Faults:

Head gasket blew when the car was just two months old - replaced under warranty. No problems since.

Clutch went at just 5,700 miles - replaced under warranty after a big row.

Passenger seat adjuster handle snapped off, glovebox lid pops open, drivers seat moves around, carpet peeling away in both footwells.

Heater matrix sprung a leak at 12,000 miles. Replaced under warranty, but interior has stunk of antifreeze ever since.

Engine idle is terrible - misfires constantly and the revs fluctuate. Apparently "it's normal", as is the fact that it rattles like a diesel when cold.

Cam cover gasket replaced three times. Last time it leaked onto an engine mount and caused it to swell. Lots of other smaller oil leaks mean a top up once a week.

Air bag warning light blinks intermittently.

Banging from front suspension.

Gearbox sticky when cold.

General Comments:

This is my second 306 XSi and unfortunately my last Peugeot. My previous L reg XSi 8 valve did 130,000 problem free miles. This car has been one disaster after another.

It's like owning a highly strung supercar, but without the good points. Clutches and head gaskets failing before 10,000 miles are inexcusable on a modern mass produced car. This 306 proves that Peugeot might know how to build a fun car, but it still doesn't know the meaning of engineering integrity, build quality, or customer service. The dealers have an excuse though - if all 306's are as bad as this, they must really have to work for a living!

Yes the handling is superb and yes it looks nice, but I don't care any more. It's an unusable wreck which I will be getting rid of as soon as possible.

Faults:

The turbo broke down at 60000KM and needs to be changed. In my opinion, that turbo was defective from the start.

Faults:

Front brake discs started to get warped, and caused shuddering when braking. Apparently brake discs on 306s have a shorter life than most.

Got them machined under warranty which fixed the problem (as long as you're driving under 80-90kph.) Hopefully next time they'll replace the discs with new ones.

The build quality is better than I expected from a French car, the interior feels and sounds solid. No squeaks or rattles so far!

General Comments:

The handling is excellent. My old Prelude was easy to drive quickly through the corners, but the Peugeot makes things so much more entertaining.

The 6-speed gearbox feels clunky when cold, but once warmed up, it is quite fluid and nice to use.

Steering response and feel is also fantastic. However not so good is the huge turning circle to the right -- makes U-turns and parking attempts difficult. From this you can tell it was designed first and foremost for people who drive on the right-hand side of the road...

Seating is quite comfortable, even the rear seats. With the seats down, the hatch area is quite impressive.

Fuel economy is quite decent when you aren't pushing it, though it requires premium fuel, making things a bit expensive.

General Comments:

It is a car with nearly nice performance, but forget its reliability. Besides, the car comfort is appalling! Peugeot could improve the 306's (and others) interior... save your money and buy another car.